IIP REVERSES SLUMP, GROWS BY 1.8% IN NOVEMBER

Why in news?

• Having contracted for three months in a row, the Index of Industrial Production (IIP) recorded a growth of 1.8% in November 2019, mainly on account of an improvement in the manufacturing sector, official data showed on 10th January 2020.
• The IIP growth in November 2018 was 0.2%.

Details

• According to the National Statistical Office (NSO) data, the growth in the manufacturing sector was 2.7% as against a contraction of 0.7% in the same month on 2018.
• Electricity generation shrank by 5%, as against a growth of 5.1% in November 2018.
• The IIP growth during April-November in the current fiscal came in at  0.6%, far slower than the 5% in the same period of 2018-19.
• Mining sector output decelerated to 1.7%, from 2.7% in the year earlier period.

Background

NSO:

• NSO as an agency was envisaged firstly by Rangarajan Commission to implement and maintain statistical standards and coordinate statistical activities of Central and State agencies as laid down by the National Statistical Commission (NSC).
• This commission had also recommended setting up of the NSC, headed by a person with a Minister of State-level designation, to serve as a nodal and empowered body for all core statistical activities of the country.
• NSO was formed with the merger of National Sample Survey Office (NSSO) and Central Statistics Office (CSO) under Ministry of Statistics and Programme Implementation (MoSPI).

IIP:

• The Index of Industrial Production (IIP) is an index that shows the growth rates in different industry groups of the economy in a fixed period of time.
• It is compiled and published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.
• IIP is a composite indicator that measures the growth rate of industry groups classified under:
  • Broad sectors, namely, Mining, Manufacturing, and Electricity.
  • Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods